7/29/2019 Strategic Models
1/19
StrategicModels
,
BusinessPolicy&
Strate
gicManagement
-GauravVatsa
7/29/2019 Strategic Models
2/19
Cent
erHeavy
Model
7/29/2019 Strategic Models
3/19
Cent
reHeavy:AnExam
ple
Economies
ofS
cale
Product
Design
COST
EFFICIENCY
Sup
plier
Costs
Process
Restructu-
ring
7/29/2019 Strategic Models
4/19
DivergingRad
ial
7/29/2019 Strategic Models
5/19
Divergin
gRadial
AnExam
ple-CSR
Stakeholder
Interests
Better
Brand
Value
CSR
Differe
ntiate
Better
Operating
Efficiency
7/29/2019 Strategic Models
6/19
Diver
gingRadia
l:
Reas
onsforCo
llaboration
/Alliance
7/29/2019 Strategic Models
7/19
TwoFactorMatrix
High
LOW
High
LOW
7/29/2019 Strategic Models
8/19
TwoFactorMatrix-AnE
xample
High
Niche:Lux
ury
HighPrices
Automobile
Industry L
OW
High
LOW
Exp
ectedVolumes
Customer
Expectations
7/29/2019 Strategic Models
9/19
High
Niche:Lux
ury
HighPrices
B/C-Se
gment
LOW
High
LOW
Exp
ectedVolumes
Customer
Expectations
7/29/2019 Strategic Models
10/19
TwoFactorMatrix:AnE
xample
High
Niche:Lux
ury
HighPrices
B/C-Se
gment
LOW
High
LOW
LowP
rices
Undercu
tComp.
Exp
ectedVolumes
Customer
Expectations
7/29/2019 Strategic Models
11/19
High
Niche:Lux
ury
HighPrices
B/C-Se
gment
LOW
High
LOW
??
LowP
rices
Undercu
tComp.
Customer
Expectations
Exp
ectedVolumes
7/29/2019 Strategic Models
12/19
Note
sforTwo
FactorM
atrix
Choo
singthe2factorsdependsonthe
individualsanalysis
andtheindustry.
Forexamplepurpose,weveconsideredtheAutomobile
indus
try.Thetwofactorsconsideredh
ereare,
Volumes
ExpectedandCustomersExpectationsin
termsoffeatures,
quaity,ueeiciency
etc.
Thequestionmarkisastrategiczone
wherecompanies
dont
liketoenter.Itsafailurezone
companiesmay
launch
intot
heHighVol.-HighExpectationzone.Overtime,
expectationsarenotm
eti.e.Custome
rExpectationsturn
loww
hichinturnReducesthevolumesofthecompan
y
leadingtofailure.
7/29/2019 Strategic Models
13/19
Bran
chModel
7/29/2019 Strategic Models
14/19
Bran
ch:Exam
ple-Activ
ityListing
Internally
P
erformedActivities
Su
ppliers
Manufacturing
RetailOutlets
Logistics
7/29/2019 Strategic Models
15/19
Logic
alFramew
ork:StrategicLinkage
OUTCOME
IMPACT
RESOURCES
ACTIVITY
OUTPUT
7/29/2019 Strategic Models
16/19
Funn
elAnE
xample
Customer&
Benefits
Com
etitive
Se
ment,Size
Industry
Structure
En
vironmentalTrend
s
Competitive
Dynamics
Space
Channels
Strategic
Positioning
Value
Proposition
Perceptual
Space
7/29/2019 Strategic Models
17/19
StrategicSituation/Pos
ition
PESTEL
FACTORS
Industry
Attractive
-
ness,
dynamics
,&
competition
Customer
needs
&
desires
(Met/
Unmet)
External
Factors
Strategic
StrategicSituation/P
osition
Situation/P
osition
Competitiv
e
position
(through
customers
eyes&in
industry)
Competitiv
e
position
(through
customers
eyes&in
industry)
Capabilities
&
Resources
(know-how
,
people,
money,etc
)
Vision,
values
& culture
Internal
Factors
7/29/2019 Strategic Models
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Strateg
yFormulationMod
el
EnvironmentalScan
ANALYSIS
SituationPast
M
ission&Vision
Performance
BASIS
CO
MPONENTS
Det
ermining
Specifics
Ev
aluate
Whereweare
Wherewew
anttobe
Howw
ewilldoit
Background
Information
SituationalAnalysis
SWOTStrengths,
Weaknesses,
Opportunities,
Threats
,
PresentandFuture
SignificantIssues
Align/Fitwith
Capabilities
V
alues/Guiding
P
rinciples
M
ajorGoals
S
pecificObjectives
Me
asurement
Targets/Standardsof
Performance
Initiativesand
Projects
Man
agement
ReviewProgress
Bala
ncedScorecard
Take
Corrective
Actions
Gaps
ActionPlans
Feedbackupstream
revis
eplans
7/29/2019 Strategic Models
19/19
CyclicProcess
Capability
Analysis
Foresight
Purpose/Values/
Vision
BusinessE
nvironment
Climate-culture
Stakeholde
rs
Whyarewehere?
Whatunderpinsour
a
roach?
SuccessMo
del
(Stakeholdermapping
Evaluation
OperatingM
odel
C
oreprocesses
EnvironmentResources
Core
andcritical
competencies
Finance,Marketing,
Adm
in,Operations,
Com
municationsetc.
Balanced
Scorecard
Peopledim
ensions
Customers
Leadership
Innovation
Breakthroug
hs
Strategicinitiatives
Milestoneidentification
Principlesan
dPolicies
BehaviouralStandards